Saudi Arabia: As Saudi Arabia continues its rapid transformation into a global tourism hub, industry leaders at the Future Hospitality Summit in Riyadh forecast the Kingdom’s emergence as one of the world’s top five travel destinations by 2040. 

A clear focus on diversified tourism offerings, reduced seasonality, and workforce development is driving long-term strategic alignment between the public and private sectors, experts told attendees.

Saudi Arabia is seeking to boost its tourism and hospitality sectors under the Vision 2030 economic diversification initiative, with a plan to deliver 362,000 new hotel rooms by the end of the decade to meet growing demand.  

Having already surpassed its initial goal of 100 million visitors, the Kingdom now targets 150 million annually by 2030, reinforcing its ambition to become a premier global destination and solidifying tourism as a key pillar of long-term economic growth. 

Speaking during a panel on the 2025–2040 hospitality outlook, Ibrahim Al-Turki, chairman of Growth Partner, reflected on the sector’s trajectory since the early planning days of Vision 2030. 

“To be honest, I didn’t imagine that we would be here today,” he said. “From this perspective, I think Saudi Arabia in 2040 will be one of the top five destinations.” 

Al-Turki emphasized that to sustain momentum, the Kingdom must continue to develop meaningful reasons for global visitors to choose Saudi Arabia — not just more hotel rooms. 

“The rooms are everywhere, but they need a reason to come. In 2040, we need to ask ourselves: ‘What is the why’?” he said. 

He pointed to recent progress in addressing long-standing seasonality issues, citing initiatives such as Riyadh Season, Jeddah Season, and new destination management organizations like AlUla and the Red Sea. 

“In Makkah and Madinah, 70 percent of visitors used to come in Ramadan. This year, only 20 percent came in Ramadan — the rest is distributed across the year,” he said. 

“This is how the ADR (average daily rate) of the hotels will increase. That investment will be better, and this is how we deal with this activation and seasonality,” he said. 

Elie Milky, vice president of development for the Middle East, Pakistan, Greece, and Cyprus at Radisson Hotel Group, noted that Saudi Arabia’s strength lies in the breadth of its tourism strategy. 

“Saudi Arabia is becoming a global destination covering religious tourism, medical tourism, agricultural tourism, corporate tourism. It’s going to cover every aspect of tourism that we know today,” he said. 

Milky echoed the need for a wide-ranging hotel supply strategy, emphasizing the role of secondary cities in balancing demand. 

“The more quality hotels you have in secondary locations, the more people visit,” he said. 

He added that Radisson has expanded significantly across the Kingdom with a diversified brand portfolio, including new openings in Madinah and upcoming launches in Makkah and the Eastern Province. 

In support of long-term growth, Milky also underscored the importance of workforce development. 

“Talent is a challenge, not only in Saudi Arabia, but globally,” he said. “More than 40 percent of our talent are Saudis — Saudi men, Saudi women — and with our regional office in Riyadh, Saudization is at 60 percent.”